Zero-Hour contracts are they right for your Business?

Around 2.3% of the UK work force use zero-hour contracts and
this number is rising. Employer’s usually employ people under a zero-hour
contract to secure flexible employees when staff levels vary throughout the
year.

It is useful to use zero-hour contracts where work demands are irregular or there is not a constant demand for staff.

Every cloud has a silver lining, and here are some of the
benefits and pitfalls to look out for when using zero-hour contracts.

Pro’s: –

It provides you, as the employer, with the
option to have a flexible work force.

There are no obligations to provide workers with
hours.

You only pay the workers for the hours worked.

Con’s: –

The worker does not have to accept the work if
they don’t want to, which could leave you in a bit of a pickle if you need
someone to work urgently.

There could be a conflict of interest as workers
are now entitled to have more than one zero-hour contract with other employers.

Workers are also entitled to certain employment
rights that may put a strain on the business.

As mentioned above all workers have certain employment
rights such as holiday pay, ALL workers
accrue holidays for the hours worked, even when they are under a zero-hour
contract. Within the first-year workers must accrue the holidays before
they can be taken. If there is a break within the employment, it is the
employer’s duty to pay any accrued holidays that the worker hasn’t taken before
they leave. However, if the employment is continuous, after the first year the
worker can take the holidays without accruing them first.

You
may notice I have been using the term “worker” and not “employee”, this is
because most employers employ workers. However, if a worker’s employment status
changes to employee, there are other rights they have, such as statutory notice
rights. Developments that contribute to such a change could include subjecting
the employee to disciplinary action if they don’t accept all the hours they are
offered.

Zero
hours status also must be shown in the contract as well as in
practice. If this is disputed, an
employment tribunal may decide for themselves what contractual relationship
exists between employer and worker and any associated employment rights,
including enhancements such as accruing the right to take maternity leave or
pay and the right to ask to request flexible working.

These are all things to think about when deciding if zero-hour contracts are the way to go for your business.